ATMs being rolled out in Australia for online currency Bitcoin

PETER LLOYD: The virtual currency Bitcoin is about to come crashing into the real world, with plans to install 100 Bitcoin ATMs around the country.

The online form of money is currently estimated to be worth an astonishing $10 billion, but there are increasing concerns about the lack of regulation surrounding this new currency.

Natalie Whiting reports.

(Sound of ATM buttons being pressed)

NATALIE WHITING: You can find an ATM on most city streets. Now there's a plan to start installing Bitcoin ATMs. But some people are still hesitant about using the online currency.

ALEX: If there was more regulation I guess I'd feel a lot more comfortable using it.

JOEL: I just don't see too much trust from the big banks and corporations in the system just yet.

LUKE: Without a doubt, it is the future. I'm not quite sure whether society has actually caught up with that yet.

NATALIE WHITING: Bitcoin is traded computer to computer and has no central authority or government backing. It's primarily used to purchase goods on the internet, and has no transaction fees.

A new company, Australian Bitcoin ATMs, is now planning to roll out 100 machines to try to increase the use of the currency.

The company's CEO is Chris Guzowski.

CHRIS GUZOWSKI: You can type in how many Bitcoins you want to sell, then our ATM goes onto an overseas Bitcoin exchange and executes that transaction for you and will spit out the cash for which you sold the Bitcoin for. And the opposite also applies, so you can put cash in and purchase Bitcoin.

NATALIE WHITING: There have been issues in the past with computers being hacked and Bitcoins being stolen.

David Glance from the University of Western Australia says he thinks it will take more than ATMs to facilitate mass adoption.

DAVID GLANCE: I think that until you see the National Australia Bank or the Commonwealth or one of the major banks getting behind the currency, providing simplified access to it, I think it's always going to be a niche.

NATALIE WHITING: He says the lack of regulation in Australia is also a major issue.

DAVID GLANCE: In the US they're currently going through some discussions about the regulation of Bitcoin exchanges. We haven't really got there as such in Australia. This has been the problem with sites going out of business or people just shutting up shop - it quite often leads to people losing their investments.

NATALIE WHITING: But regulation isn't the only issue with Bitcoin. It's also very volatile, with values fluctuating by as much as 50 per cent in a day.

CHRIS GUZOWSKI: Well I think most Bitcoin adopters so far have been aware of the risk associated with purchasing the digital cryptocurrency.

NATALIE WHITING: Do you think it might hinder bringing new people on board; if the introduction of ATMs is about making it more accessible and more mainstream, do you think people won't be willing to take that risk?

CHRIS GUZOWSKI: Look it's possible. It's no secret, and everybody should be aware of the risk profile of Bitcoin.

NATALIE WHITING: The Bitcoin ATMs will begin to be rolled out next month, with the first to be installed in Sydney and Melbourne.